TTecnoglass, Deere, Avis Budget Group, Insteel, and REV Group Shares Plummet, What You Need To Know

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the ground transportation industry, including RXO and its peers.

The growth of e-commerce and global trade continues to drive demand for shipping services, especially last-mile delivery, presenting opportunities for ground transportation companies. The industry continues to invest in data, analytics, and autonomous fleets to optimize efficiency and find the most cost-effective routes. Despite the essential services this industry provides, ground transportation companies are still at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies’ offerings while fuel costs can influence profit margins.

The 16 ground transportation stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates.

Luckily, ground transportation stocks have performed well with share prices up 17.7% on average since the latest earnings results.

RXO

With access to millions of trucks, RXO offers full-truckload, less-than-truckload, and last-mile deliveries.

RXO reported revenues of $1.42 billion, up 36.6% year on year. This print was in line with analysts’ expectations, but overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income estimates.

RXO Chairman and CEO Drew Wilkerson said, “Market conditions tightened late in the third quarter as truckload capacity exits accelerated, which impacted both our buy rates and Brokerage gross margin. We also saw a further weakening of demand across our business as the quarter progressed. Both of these dynamics have continued into the fourth quarter. As we navigate this market, everyone at RXO remains focused on delivering results for our customers, carriers, employees and shareholders.”

RXO pulled off the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 15.2% since reporting and currently trades at $15.75.

Read our full report on RXO here, it’s free.

Best Q3: Hertz

Started with a dozen Model T Fords, Hertz is a global car rental company providing vehicle rental services to leisure and business travelers.

Hertz reported revenues of $2.48 billion, down 3.8% year on year, outperforming analysts’ expectations by 3.1%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Hertz pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 15.2% since reporting. It currently trades at $5.72.

Weakest Q3: Universal Logistics

Founded in 1932, Universal Logistics is a provider of customized transportation and logistics solutions operating throughout the United States and in Mexico, Canada, and Colombia.

Universal Logistics reported revenues of $396.8 million, down 7% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.

Interestingly, the stock is up 15.9% since the results and currently trades at $17.76.

Read our full analysis of Universal Logistics’s results here.

Werner

Conducting business in over a 100 countries, Werner offers full-truckload, less-than-truckload, and intermodal delivery services.

Werner reported revenues of $771.5 million, up 3.5% year on year. This print surpassed analysts’ expectations by 1%. More broadly, it was a softer quarter as it logged a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

The stock is up 36.5% since reporting and currently trades at $34.65.

Read our full, actionable report on Werner here, it’s free.

Avis Budget Group

The parent company of brands such as Zipcar and Budget Truck Rental, Avis is a provider of car rental and mobility solutions.

Avis Budget Group reported revenues of $3.52 billion, up 1.1% year on year. This result beat analysts’ expectations by 1.8%. It was a very strong quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EBITDA estimates.

The stock is down 24.2% since reporting and currently trades at $125.06.

Read our full, actionable report on Avis Budget Group here, it’s free.